J.Martins expects annual sales growth 12-15 pct in next three years
Portugal-based retailer Jeronimo Martins expects annual sales to grow by between 12 and 15 percent i…Portugal-based retailer Jeronimo Martins expects annual sales to grow by between 12 and 15 percent in the next three years and core earnings to expand at a similar pace, reinforcing its growth outlook after some concerns caused by its performance this year.
In presentations to investors and analysts on its strategic plan for the period, Jeronimo Martins also said on Thursday it will invest between 60 and 70 percent of 2.2 billion euros earmarked for capital expenditure in its main market Poland, where its Biedronka unit is the largest food retailer.
The company's previous plan for 2013-15 called for an investment of 2.5 billion euros, which included this year's start of operations in Colombia, and projected a double-digit overall annual sales and EBITDA growth.
Last month, when the company posted a near 4 percent drop in third-quarter net profit, it warned that its EBITDA growth would slightly lag sales growth this year.
In the first nine months of 2013, EBITDA rose 7.8 percent, while sales increased 11.5 percent.
Jeronimo Martins shares rose 2.9 percent in early trading to 15.38 euros, outperforming the broader market in Lisbon, which was up 1 percent.
The group also said on Thursday it plans to open at least 800 new Biedronka and 200 Hebe stores in Poland by the end of 2016, as well as 200 stores in Colombia, up from 34 now and 150 planned by 2015.
It maintained its target of having 3,000 Biedronka stores by 2015.
In Portugal, which has only started to leave behind its worst recession since the 1970s and where Jeronimo Martins is the second-largest retailer, the company plans to open 30 of its Pingo Doce supermarkets.
Overall, it said it expects same-store or like-for-like growth ahead of the market in all businesses.